WTW updates climate reporting comparative table to help corporations navigate latest developments in climate disclosure

LONDON, September 3, 2025 — WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company has published the latest edition of its Climate Reporting Comparative Table. The report provides a comprehensive review of climate-related financial disclosure requirements across key global jurisdictions, clarifying the crossovers and where regulatory frameworks diverge, including:

• The Corporate Sustainability Reporting Directive (CSRD), alongside the EU Taxonomy common classification scheme for sustainable economic activities.
• The International Financial Reporting Standards’ (IFRS) International Sustainability Standards Board’s (ISSB) S1 and S2.
• The Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD).
• Current US federal and state-level climate regulatory requirements.

The table offers valuable insights to help organisations align their internal reporting processes with evolving global standards, manage climate-related risks and opportunities, and plan for upcoming compliance requirements. Additionally, it serves as a communication tool to engage with stakeholders, including investors and regulators, on climate-related disclosures.

Muhammed Anwar, Director, Strategic Climate Disclosure, WTW, said: “While there may be headwinds in some territories, continuing development and adoption of mandatory and voluntary climate disclosure frameworks continues apace worldwide, as evidenced by a range of key global developments. Notably, these requirements increasingly mandate the financial quantification of climate risks.”

Key updates

• CSRD omnibus updates - In February 2025, the EU introduced a set of legislative updates known as the ‘Omnibus’ proposals. These aim to streamline the CSRD and its associated European Sustainability Reporting Standards (ESRS), reducing the reporting burden on companies while keeping the strong emphasis on transparency and accountability.
• IFRS S1 and S2 - Increasingly, IFRS is delivering on its aim to ‘sunset’ and replace TCFD, with TCFD’s responsibilities transferring to the IFRS Foundation’s ISSB. While IFRS standards adoption remains voluntary at the international level, several countries including the U.K., Australia, Canada, Singapore and Nigeria have announced intentions to align or integrate the standards into their domestic regulatory regimes.
• Ongoing influence of voluntary standards and market-led disclosure – Voluntary frameworks and raters, including Carbon Disclosure Project, continue to be influential, as does the Science Based Targets initiative (SBTi) in shaping investor expectations, benchmarking corporate performance and informing ESG ratings.
• Spotlight on California - Despite legal and political complexity, California continues to pursue clear legislative steps at the state level. Three new laws will introduce mandatory climate-related disclosures for companies operating in the state.

The California requirements are currently aligned to TCFD but leave room to align with more updated standards such as IFRS, which is fast becoming a global standard with adoption across the Asia Pacific, Europe and Latin America regions.

The latest edition of the table reveals ongoing harmonisation with the CSRD Omnibus reducing data points and aligning with IFRS standards. However, this simplification does not remove the requirement to quantify the financial impacts of climate risks and opportunities. This remains fundamental to how companies accurately assess and manage risks throughout their operations and value chain.

The full report can be downloaded WTW Climate Reporting Comparative Table: Summer 2025 update.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organisational resilience, motivate their workforce and maximise performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success - and provide perspective that moves you.